Many oral contracts are legally binding, but the possibility that a party will not respect its commitment still exists; That`s why people often prefer to make their deals in writing. “But if the president confirms it at SONA, I don`t think we can get out of it. So that`s what we`re related to; We have to respect that,” Carpio said. The president will have to say that there is no such agreement, because if it exists, we are bound to it,” he added. MANILA, Philippines – President Duterte`s alleged verbal fisheries agreement with China becomes binding when he mentioned it in his State of the Union (SONA) speech on July 22, the Supreme Court of Senior Justice Association Antonio Carpio warned yesterday. Most oral contracts are legally binding. There are a few exceptions, however, depending on the design of the agreement and the purpose of the contract. In many cases, it is best to draft a written agreement to avoid litigation. Just like the aunt in our imaginary scenario, you`re probably better off documenting a written agreement. Something as simple as a promised note, detailing the nephew`s promise to repay his aunt, could have avoided any quarrel over their agreement. Finally, it is less difficult to ask family members for a written loan than to bring them to justice. “At the time of making this statement to the SONA, it is a definitive confirmation that this oral agreement is now a binding legal agreement for the Philippines and China,” Carpio said at a forum organized by Stratbase ADR.
Duterte revealed that such an agreement had been reached to clarify an earlier controversial statement that China could not be deterred from fishing in the Philippine EEZ. For a verbal agreement to be binding, the elements of a valid contract must be present. To illustrate how the elements of a contract create binding conditions in an oral agreement, we use the example of a man who borrows $200 from his aunt to replace a flat tire. Dear John, you can collect from your friend, even if there is no written agreement to support your request. A contract was perfected from the moment you agreed to renovate his house. Under Article 1305 of the Civil Code of the Philippines, a contract is a meeting of minds between two people, in which one undertakes, in relation to the other, to give something or to provide a service.